AI and the Investing Landscape
We had a fascinating conversation on the investment landscape for Artificial Intelligence (AI) with Marc Nabi of Capital Group on Wednesday. You can watch the 45-minute conversation below.
Highlights included:
Many giant tech companies like Microsoft, Amazon, Meta, and Google have first-mover advantages due to their decades of user data (which fuels AI improvements) and immense capital advantage.
AI is expected to have a broad impact across industries beyond tech, including healthcare, energy, and financial services. It may also impact the global supply chain – semiconductors, data centers, cooling systems, and copper.
A few companies have captured most of the market and outsized returns in recent technological shifts, like e-commerce, social media, and cloud computing.
Perhaps there will be an ecosystem of upstarts that build an “application layer” on top of AI and leverage that to disrupt incumbents.
Today’s leading AI companies are highly profitable and have robust infrastructure in place, unlike the cash-burning startups of the late 1990s Dot-Com era.
Discussion on the impact of AI on labor markets - some job displacement but also retraining/upskilling opportunities like what happened with robotics in the automotive industry.
The excellent slide deck that we reviewed can be found here.